Transferring your benefits

Before submitting a transfer request, it’s important you understand your options and the benefits you might miss out on by leaving the Scheme.

You can find more information about your entitlements across this website or in your member booklet.

You can also find additional information online, including via the links below:

• Should I transfer my final salary pension? Article by the consumer body, Which?
• The Financial Conduct Authority (FCA)’s guide for anyone considering a defined benefit (final salary) pension transfer
• MoneyHelper’s guide to transferring your defined benefit (final salary) pension

You can also find a register of Independent Financial Advisers (IFAs) at unbiased.co.uk. An IFA will help you understand your pension, the options available, and how to manage your finances.

By using Unbiased you can:

• get contact information for IFAs in your area, including pension specialists
• be matched with a suitable adviser based on what you need help with
  

All IFAs listed on the site are registered with the Financial Conduct Authority and the first meeting is typically free.

When considering a new pension provider, it’s important to be on the lookout for potential scammers and take steps to protect your pension savings. This includes:

• Checking the new provider accepts transfers in (not all schemes do)
• Making sure the deal you’re being offered isn’t a known scam – see scamsmart.fca.org.uk for an up-to-date list
• Confirming that the company is registered with the Financial Conduct Authority (FCA) at register.fca.org.uk
• You should also check this for any adviser who might have led you to the new scheme you’re considering.
• Having a good understanding of the benefits you may lose by leaving your current scheme and, by comparison, what your new scheme offers, as well as what it costs and how it will invest your money.
• Studying the details of any transfer carefully and being particularly wary of ‘deals’ such as overseas investments, guaranteed returns, one-off pension investments, cold calls, upfront cash or promises to help you access your pension funds early. These offers are unlikely to be genuine.
• Knowing the signs of a scam and what to do if you’re concerned. You can visit our scams page or MoneyHelper to learn more.
• Seeking independent financial advice if needed

This video from The Pensions Regulator (TPR) highlights the dangers of scams and the impact they can have.

If you decide to go ahead with a transfer, you will need to request a guaranteed transfer value quotation, also known as a Cash Equivalent Transfer Value (CETV).

A CETV represents the expected cost of providing your benefits within the Scheme. You can only get one free guaranteed CETV every 12 months. You can ask for more within that period, but you will be charged for each, so please consider this carefully.

A guaranteed CETV can only be provided to members who have already left the scheme (either by resigning or opting out). As an active member, this means you will need to stop making contributions and opt out before this can be done. You can opt out by contacting Railpen. We strongly recommend you seek independent financial advice before taking this step.

Once you've stopped paying in, you can request a transfer value estimate at any time before you start taking your benefits. To request a guaranteed CETV, please email the scheme administrator, Railpen, at enquiries@railpen.com, including your pension reference number and National Insurance number or date of birth.

If you’re still considering your options you can ask for an illustrative CETV instead. While this isn’t guaranteed, it will give you an idea of what your pension might be worth if you transfer it elsewhere, and can be done while you’re still paying in. You can request one of these non-guaranteed illustrations free of charge each year by contacting Railpen and should receive it within 10 working days.

Once you’ve started receiving your benefits, you can no longer transfer out of the scheme and cannot request a transfer value unless it is for divorce purposes.

Once Railpen has processed your request for a transfer value, you’ll get a "statement of entitlement” to a “guaranteed cash equivalent” transfer value (CETV) from the Trustee.

You should typically receive this within 10 working days of your request.

Your CETV gives you a guaranteed value for your pension that will be paid to your new provider if the transfer goes through.

The amount shown will only be honored if the payment confirmation is received within 3 months, so it’s important to return any paperwork provided within that time frame.

At this point you will also be given further information about the different types of arrangement you might be able to transfer in to and whether you are legally required to take independent advice before you can transfer (this applies where the transfer value is £30,000 or more). You’ll also be asked to provide details of the new pension provider you have chosen.

Once all of the paperwork has been returned, Railpen will assess your transfer request in line government regulations designed to help protect savers from scams or illegal transfers.

The regulations state that a transfer can only be made if it meets certain conditions and there are no ‘red’ or ‘amber’ warning flags that haven’t been addressed.

Your transfer will not be refused on the basis it might not be in your best interest. However, Trustees can refuse transfers where there's a greater risk it may be part of a scam.

It may take a few weeks for all the necessary checks to be carried out.

If there are concerns that your transfer request does not satisfy regulations, you will be contacted again and may be asked for additional information or referred to the government approved advice service, MoneyHelper, for guidance.

If the information you’ve provided shows that your new pension scheme meets the relevant conditions in line with regulations, then Railpen will process your transfer and arrangement payment as quickly as possible (see point 6).

If you have paid Additional Voluntary Contributions (AVCs), these will need to be divested before the transfer can be paid. This divestment will not happen until Railpen has everything else we need in order to pay the transfer. 

You’ll receive a letter to confirm once the transfer process is complete. This usually takes around 10 working days once all of the information in step 5 has been received.

The whole process should take around 8 months, including the time to stop paying your contributions and become a deferred member.

Once a transfer is complete, it is permanent and cannot be reversed at a later date.